Authors: Vadthyavath Shiva, Dr. M. P. Suri Ganesh
Abstract: The Portfolio management plays a vital role in helping financial institutions achieve an optimal balance between risk and return while ensuring efficient utilization of available funds. Punjab National Bank (PNB), one of India's leading public sector banks, adopts various portfolio management practices to maintain profitability, improve asset quality, and meet regulatory requirements. This study examines the portfolio management practices followed by Punjab National Bank, Hyderabad, with a focus on analyzing the risk and return characteristics of selected securities during the period 2021–2026. The study is based entirely on secondary data collected from Punjab National Bank annual reports, Reserve Bank of India (RBI) publications, National Stock Exchange (NSE), Bombay Stock Exchange (BSE), company annual reports, journals, books, and other financial websites. Six securities—Gujarat Ambuja Cement Ltd., Larsen & Toubro Ltd., Ranbaxy Laboratories, Cipla Ltd., Karur Vysya Bank Ltd., and ICICI Bank Ltd.—have been selected for analysis. Statistical tools such as return analysis, standard deviation, correlation, diversification analysis, and portfolio weighting have been used to evaluate portfolio performance and investment risk. The findings indicate that effective portfolio diversification helps reduce unsystematic risk while improving overall portfolio performance. The analysis also reveals that selecting securities from different sectors enhances investment stability and enables better risk-adjusted returns. Punjab National Bank follows systematic investment and risk management practices that support efficient allocation of funds and long-term financial sustainability. The study concludes that a well-diversified portfolio supported by continuous monitoring and sound investment strategies contributes significantly to improving portfolio efficiency and achieving organizational financial objectives.
DOI: http://doi.org/10.5281/zenodo.21127662
